Millennial Spending Weekly Roundup

 📈 U.S. Markets Bounce Back

After weeks of uncertainty and a bumpy Q1, U.S. stock markets staged a strong comeback this week. The S&P 500 notched its 9th straight daily gain, closing at its highest level since early April. This rally wasn’t random — it was rooted in a few key catalysts that renewed investor confidence and shifted market sentiment.

🔹 Jobs Data Beat Expectations

The April non-farm payrolls report came in stronger than economists had forecast, with 177,000 jobs added and the unemployment rate holding steady at 4.2%. This shows that, despite ongoing economic headwinds, the labor market remains resilient. Job gains were strongest in healthcare, professional services, and leisure/hospitality — all strong indicators of consumer-facing recovery.

For Millennials and Gen Z workers, this could mean slightly better odds in the job market, especially in service and tech-adjacent industries.

🔹 Trade Talk Optimism: U.S.–China Relations

Markets also reacted positively to signs that the United States and China might be resuming trade negotiations. The two economic giants have had a tense relationship in recent years, and tariffs imposed earlier this year spooked markets. Any easing of that pressure — or a roadmap to easing tensions — brings relief to companies with global supply chains, especially in sectors like semiconductors, EVs, and consumer electronics.

⚠️ A Word of Caution

While the week ended on a high note, underlying risks remain. The U.S. GDP contracted by 0.3% in Q1 2025, indicating that economic growth is slowing. Inflation remains elevated — sticky, as economists like to say — largely due to tariff-related import costs and rising consumer demand in select sectors. The Federal Reserve may hesitate to cut rates soon if inflation doesn’t budge.

🌍 Global Markets Rally Too

The U.S. wasn’t alone in seeing green this week. Global markets also moved higher:

🇬🇧 Europe

The FTSE 100 in the U.K. is now on the verge of setting a 15-day record streak — a sign of growing investor optimism. This comes as inflation data out of the Eurozone begins to soften and the Bank of England is expected to cut rates next week, further fueling confidence in the recovery of European equities.

🇨🇳 Asia

In Asia, the Shanghai Composite and Hang Seng Index gained ground after Chinese officials signaled a renewed willingness to restart trade talks with the U.S. This helped bolster confidence in Chinese exports, which had been hit hard by protectionist measures. Japan’s Nikkei 225 also advanced, reflecting broader strength in tech and manufacturing shares.

🔮 What to Watch: Week of May 5–9, 2025

Here are the key economic events and earnings releases that could shape markets — and your money decisions — next week:

🗓️ Monday, May 5

ISM Services PMI – This report measures business activity in the U.S. services sector (everything from restaurants to software). A strong reading suggests economic momentum is continuing.

Earnings to Watch:

• Palantir (PLTR) – AI and defense tech focus

• On Semiconductor (ON) – Key supplier in EV and automation markets

• HIMS & Hers – Digital healthcare outlook

• Mattel – Consumer sentiment via toy sales

• Upwork – Freelance and gig economy trends

🗓️ Tuesday, May 6

U.S. Trade Balance (March) – Reveals whether the U.S. is importing more than it exports — a major component of GDP.

Earnings to Watch:

• Rivian (RIVN) – A bellwether for EV appetite in 2025

• Electronic Arts (EA) – Gaming sector watch

• DigitalOcean – SMB-focused cloud trends

🗓️ Wednesday, May 7

🚨 Fed Interest Rate Decision
All eyes will be on the Federal Reserve’s policy announcement. Rates are expected to stay at 4.25%–4.5%, but the real story will be what Fed Chair Jerome Powell says about the path forward. If inflation keeps edging higher, the Fed might hold off on cutting rates until Q3.

Earnings to Watch:

• Uber (UBER) – Transportation and delivery trends

• ARM Holdings – Global chip design leader

• Fiverr – Remote/freelance work data

• Zillow – A read on the housing market

• DoorDash – Consumer spending patterns

🗓️ Thursday, May 8

U.S. Initial Jobless Claims – Tracks new applications for unemployment benefits. A rise could mean the labor market is cooling.

Bank of England Rate Decision
The BoE is expected to cut rates by 0.25% as the U.K. economy slows. This would be one of the first major central banks to begin easing in 2025.

Earnings to Watch:

• Shopify – E-commerce health check

• Affirm – Buy-now-pay-later outlook

• Dropbox, Lyft, Paramount – Legacy tech + media plays

🗓️ Friday, May 9

Fed Speeches – Key Fed officials speak after the rate decision. Watch for hawkish vs. dovish tone shifts.

Canada Unemployment Rate – Could influence North American trade sentiment.

China CPI (Inflation Data) – Will influence whether China continues stimulus efforts in H2 2025.

🔗 Resources to Stay Ahead

Here are our go-to sources for keeping up with the economic and market calendar:

• 📅 MarketWatch U.S. Calendar

• 🌐 Trading Economics Global Calendar

• 📊 S&P Global Economic Preview

💡 Tip of the Week:

As volatility creeps back in, this is a great time to review your portfolio. Here’s what smart money managers are doing:

• Rebalancing allocations to reflect new macro risks

• Holding more cash or short-term bonds for flexibility

• Watching TIPS and inflation-hedged assets as CPI remains hot

• Using dollar-cost averaging to reduce risk in volatile months

🧠 Smarter. Simpler. Financial.

Millennial Spending exists to help you make sense of markets, trends, and money moves that matter. Stay tuned next Sunday for the next issue of our Weekly Roundup — and make sure you're subscribed to get it first.